Rhode Island – State of Wayfair: More on Rhode Island Retroactivity

What that means is that the state still intends to enforce an effective date of Aug. 17, 2017, for its law concerning noncollecting remote vendors. The law, enacted Aug. 3, 2017, offers noncollecting sellers a choice: (1) Register with the Division of Taxation and collect and remit Rhode Island sales and use taxes, or (2) provide notice to consumers they may owe the state’s sales and use tax on their purchases.

That said, could it be the Island State is becoming a bit squeamish about how the issue of retroactivity is being perceived? A July 6 FAQ document for remote vendors post-Wayfairhas been edited to remove language saying it’s possible noncollecting retailers could be liable for tax on Rhode Island sales made prior to the decision.

The Rhode Island law applies to vendors that exceed the same economic nexus thresholds in the South Dakota law that was the focus of the U.S. Supreme Court’s pivotal Wayfair ruling: $100,000 in sales or more than 200 transactions annually.